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Levi & Korsinsky, LLP has commenced an investigation into the fairness of the sale of Blue Buffalo Pet Products, Inc. (NASDAQGS: BUFF) to General Mills, Inc. (NYSE: GIS) for $40 per share. Insiders representing more than 50% of Blue Buffalo’s outstanding shares have already agreed to tender their shares.
The investigation concerns whether the Board of Blue Buffalo breached their fiduciary duties to stockholders by failing to adequately shop the Company before agreeing to enter into this transaction, and whether General Mills is underpaying for Blue Buffalo shares, thus unlawfully harming Blue Buffalo shareholders. In particular, in the merger announcement Blue Buffalo notes the Company is “the fastest growing major pet food company making natural foods and treats for dogs and cats…” and at least one analyst has set a price target of $52.00 per Blue Buffalo share.
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